Coronavirus crisis leads to largest U.S. consumer price decline since 2008

Malaysia News News

Malaysia Latest News,Malaysia Headlines
  • 📰 Reuters
  • ⏱ Reading Time:
  • 47 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 97%

Consumer prices in the U.S plummeted in April by the most since the Great Recession. The biggest item dragging down the index was gasoline as Americans stayed home during the coronavirus crisis

The report from the Labor Department on Tuesday also showed a record decrease in underlying prices last month, raising the specter of a bout of deflation as the economy sinks deeper into a recession triggered by lockdowns to slow the spread of COVID-19, the respiratory illness caused by the coronavirus.

The consumer price index tumbled 0.8% last month after falling 0.4% in March. That was the largest decline since December 2008 when the economy was in the throes of a recession, and marked the second straight monthly decrease in the CPI. Economists polled by Reuters had forecast the CPI falling 0.8% in April and rising 0.4% year-on-year.

Excluding the volatile food and energy components, the CPI dropped 0.4% in April, the largest decline since the series started in 1957. The so-called core CPI dipped 0.1% in March, which was the first drop since January 2010. April marked the first back-to-back fall in the core CPI since 1982. “This is not to suggest that we see runaway inflation coming down the road, we do not, but the market’s pricing of inflation at effectively zero is unrealistic and excessively pessimistic,” said Rick Rieder, chief investment officer of global fixed income at BlackRock in New York.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

Reuters /  🏆 2. in US

Malaysia Latest News, Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

UK house prices to fall on coronavirus, but analysts don't expect a 2008-like collapseUK house prices to fall on coronavirus, but analysts don't expect a 2008-like collapseU.K. house prices will fall 'modestly' in the coming months, but are unlikely to drop as dramatically as in 2008, two analysts told CNBC.
Read more »

U.S. consumer prices post biggest decrease since 2008U.S. consumer prices post biggest decrease since 2008U.S. consumer prices dropped by the most since the Great Recession in April, weighed down by a plunge in demand for gasoline and services including airline travel as people stayed home during the coronavirus crisis.
Read more »

UK house prices to fall on coronavirus, but analysts don't expect a 2008-like collapseUK house prices to fall on coronavirus, but analysts don't expect a 2008-like collapseU.K. house prices will fall 'modestly' in the coming months, but are unlikely to drop as dramatically as in 2008, two analysts told CNBC.
Read more »

U.S. consumer prices post biggest decrease since 2008U.S. consumer prices post biggest decrease since 2008U.S. consumer prices dropped by the most since the Great Recession in April, weighed down by a plunge in demand for gasoline and services including airline travel as people stayed home during the coronavirus crisis.
Read more »

Fauci warns against 'prematurely' opening U.S. states in coronavirus pandemicFauci warns against 'prematurely' opening U.S. states in coronavirus pandemicDr. Fauci told a Senate health committee in a prepared testimony that the nation’s efforts to battle COVID-19 should be 'focused on the proven public health practices of containment and mitigation'
Read more »

Laura Vinroot Poole’s Charlotte, North Carolina, Boutique Capitol Has Reopened—Here’s What Happened on Day OneLaura Vinroot Poole’s Charlotte, North Carolina, Boutique Capitol Has Reopened—Here’s What Happened on Day OneLaura Vinroot Poole discusses the challenges facing small retailers reopening amid the ongoing coronavirus crisis.
Read more »



Render Time: 2025-04-08 09:10:13